To Claim Or Not To Claim: Which Imported Items Are Eligible for Duty Drawback under TFTEA (HR 644)?

To Claim Or Not To Claim: Which Imported Items Are Eligible for Duty Drawback under TFTEA (HR 644)?

As the U.S. implements the Section 301 duties on enumerated tariff numbers imported from China, many importers are currently assessing the impact of these duties on their operations. Importers should assess the capacity to utilize duty drawback to mitigate the impact of these tariffs. With the current fluctuation and updates to tariff laws, it is important to be aware of the latest 301 tariff lists in order to maximize your refund.

Which Imported Items Are Drawback Eligible?

Below is a general list of imported items from China that could be subject to 25% additional duty rate under Section 301 tariffs:

Air and gas compressors, which are used in various goods like refrigerators

Aircraft engines and engine parts

Aircraft tires

Ball bearings

Boat motors

Bulldozers, backhoes, tampers, boring machines, and other large construction vehicles

Cranes and other “lifting equipment”

Dairy milkers, chicken incubators, and other livestock equipment

DC and AC generators of various sizes and power levels

Electrical equipment such as resistors and circuit breakers

Electricity transformers

Electronic traffics signs

Imaging and navigational equipment

Industrial heating equipment

Industrial magnets

Industrial ovens and furnaces

Large vehicles using both diesel and non-diesel fuel

Lasers

LEDs

Lithium batteries and other batteries

Machinery for foods processing, including meat processing and fruit processing

Machinery for making paper cardboard and other paper products

Medical equipment such as X-rays and pacemakers

Oil and gas drilling platform parts

Parts of printers and copy machines

Parts for televisions, video-recording equipment, and similar video products

Plows, mowers, combine harvester-threshers, and other large agricultural vehicles

Machinery for making glass products, including lightbulbs

Machinery for making rubber or plastic goods

Machinery for processing and moulding metals or cement, and their parts

Microscopes and telescopes

Nuclear reactors

Radar and radio equipment

Scales, mostly for weighing large industrial equipment

Scientific equipment such as pressure gauges and spectrometers

Some cars and trucks, motorcycles, helicopters, airplanes, and spacecraft

Trains and rail parts

Which Imported Items Are NOT Drawback Eligible?

Below is a list of imported items under Section 232 tariffs that are NOT eligible for drawback under the Presidential proclamation from the White House. Please note that this could be subject to legal challenge. This applies to all countries except Armenia, Australia, Brazil, and South Korea:

The lists above provide only a general outline of which items are and which are not eligible for duty drawback. Making sense of the full scope of standards as laid out in the new Duty Drawback Simplification Law can be a challenge. Charter Brokerage’s duty drawback specialists are well versed in both core claims and those impacted by TFTEA.

If you have any questions regarding drawback eligibility, contact Charter Brokerage at inquiries@charterbrokerage.net and one of our drawback and trade experts will assist you in determining the availability of duty drawback for your specific operations.